Chapter 6

E-Supply Chains, Collaborative Commerce,

and Corporate Portals

Learning Objectives

1. Define the e-supply chain and describe its characteristics and components.

2. List supply chain problems and their causes.3. List solutions to supply chain problems provided by

EC.4. Describe RFID as a supply chain application.5. Define c-commerce and list the major types.

Learning Objectives

6. Describe collaborative planning and Collaboration, Planning, Forecasting, and Replenishing (CPFR) and list the benefits of each.

7. Discuss integration along the supply chain.8. Understand corporate portals and their types and

roles.9. Describe e-collaboration tools such as groupware

and screen sharing.

E-Supply Chains

• DEFINITIONS AND CONCEPTS– supply chain

The flow of materials, information, money, and services from raw material suppliers through factories and warehouses to the end customers.

– e-supply chainA supply chain that is managed electronically, usually with Web technologies.

E-Supply Chains

E-Supply Chains

• SUPPLY CHAIN PARTS– Upstream supply chain

• procurementThe process made up of a range of activities by which an organization obtains or gains access to the resources (materials, skills, capabilities, facilities) they require to undertake their core business activities.

– Internal supply chain and value chain– Downstream supply chain

E-Supply Chains

• supply chain management (SCM)A complex process that requires the coordination of many activities so that the shipment of goods and services from supplier right through to customer is done efficiently and effectively for all parties concerned.

• e-supply chain management (e-SCM)The collaborative use of technology to improve the operations of supply chain activities as well as the management of supply chains.

E-Supply Chains

• Activities and Infrastructure of E-SCM– Supply chain replenishment– e-procurement

The use of Web-based technology to support the key procurement processes, including requisitioning, sourcing, contracting, ordering, and payment.

– Supply chain monitoring and control using RFID– Inventory management using wireless devices

E-Supply Chains

– collaborative planningA business practice that combines the business knowledge and forecasts of multiple players along a supply chain to improve the planning and fulfillment of customer demand.

– Collaborative design and product development– E-logistics– Use of B2B exchanges and supply webs

E-Supply Chains

– Infrastructure for e-SCM• Electronic Data Interchange (EDI)• Extranets• Intranets• Corporate portals• Workflow systems and tools• Groupware and other collaborative tools

Supply Chain Problems and Solutions• TYPICAL PROBLEMS ALONG THE SUPPLY CHAIN

– bullwhip effectErratic shifts in orders up and down supply chains.

• THE NEED FOR INFORMATION SHARING ALONG THE SUPPLY CHAIN

• EC SOLUTIONS ALONG THE SUPPLY CHAIN

RFID as a Key Enabler of Supply Chains

• radio frequency identification (RFID)A technology that uses electronic tags (chips) instead of bar codes to identify items. RFID readers use radio waves to interact with the tags.

RFID as a Key Enabler of Supply Chains

RFID as a Key Enabler of Supply Chains

RFID as a Key Enabler of Supply Chains• LIMITATIONS OF RFID

– For small companies, the cost of the system may be too high (at least for the near future).

– The lower-frequency systems (300 to 500 Khz) required for passive tags are much cheaper but offer a decreased range.

– Radio frequency interference and the limited range of passive RFID tags also may be problematic, especially because passive tags are the most economically viable option for some businesses.

RFID as a Key Enabler of Supply Chains

• RUBEE: AN ALTERNATIVE TO RFID?– RuBee

Bidirectional, on-demand, peer-to-peer radiating transceiver protocol under development by the Institute of Electrical and Electronics Engineers.

Collaborative Commerce

• collaborative commerce (c-commerce)The use of digital technologies that enable companies to collaboratively plan, design, develop, manage, and research products, services, and innovative EC applications.

Collaborative Commerce

• collaboration hubThe central point of control for an e-market. A single collaborative hub (c-hub), representing one e-market owner, can host multiple collaboration spaces (c-spaces) in which trading partners use collaboration enablers (c-enablers) to exchange data with the c-hub.

Collaborative Commerce

Collaborative Commerce

Collaborative Commerce

• COLLABORATIVE NETWORKS– Mobile Collaborative Networks

• REPRESENTATIVE EXAMPLES OF E-COLLABORATION– vendor-managed inventory (VMI)

The practice of retailers’ making suppliers responsible for determining when to order and how much to order.

• BARRIERS TO C-COMMERCE

Collaborative Commerce

Collaborative Planning, CPFR, and Collaborative Design

• collaborative planning, forecasting, and replenishment (CPFR)Project in which suppliers and retailers collaborate in their planning and demand forecasting to optimize flow of materials along the supply chain.

Collaborative Planning, CPFR, and Collaborative Design

Collaborative Planning, CPFR, and Collaborative Design

• advanced planning and scheduling (APS) systemsPrograms that use algorithms to identify optimal solutions to complex planning problems that are bound by constraints.

Collaborative Planning, CPFR, and Collaborative Design

• product lifecycle management (PLM)Business strategy that enables manufacturers to control and share product-related data as part of product design and development efforts.

• SUPPORTING JOINT DESIGN

Supply Chain Integration

• HOW INFORMATION SYSTEMS ARE INTEGRATED

• ENABLING INTEGRATION AND THE ROLE OF STANDARDS AND WEB SERVICES– Web Services

An architecture enabling assembly of distributed applications from software services and tying them together.

Supply Chain Integration

• INTEGRATION ALONG THE EXTENDED SUPPLY CHAIN

Corporate (Enterprise) Portals

• corporate (enterprise) portalA gateway for entering a corporate Web site, enabling communication, collaboration, and access to company information.

Corporate (Enterprise) Portals

Corporate (Enterprise) Portals

• TYPES OF CORPORATE PORTALS– Types of Generic Portals

• Portals for suppliers and other partners• Customer portals• Employee portals• Executive and supervisor portals• mobile portals

Portals accessible via mobile devices, especially cell phones and PDAs.

Corporate (Enterprise) Portals

– The Functionalities of Portals• information portals

Portals that store data and enable users to navigate and query the data.

• collaborative portalsPortals that enable collaboration.

Corporate (Enterprise) Portals

• CORPORATE PORTAL APPLICATIONS• JUSTIFYING PORTALS

Corporate (Enterprise) Portals

Collaboration Tools

• groupwareSoftware products that use networks to support collaboration among groups of people who share a common task or goal.

Collaboration Tools

– Synchronous Versus Asynchronous Products– Electronic Meeting Systems

• virtual meetingsOnline meetings whose members are in different locations, even in different countries.

– Real-Time Collaboration Tools– Mobile Communication and Collaboration

Platforms– Web Collaboration

Collaboration Tools

– Electronic Teleconferencing• teleconferencing

The use of electronic communication that allows two or more people at different locations to have a simultaneous conference.

• video teleconferenceVirtual meeting in which participants in one location can see participants at other locations on a large screen or a desktop computer.

• data conferencingVirtual meeting in which geographically dispersed groups work on documents together and exchange computer files during videoconferences.

– Web conferencing

Collaboration Tools

– Voice-over-IP (VoIP)Communication systems that transmit voice calls over Internet–Protocol-based networks.

– Interactive Whiteboards– screen-sharing software

Software that enables group members, even in different locations, to work on the same document, which is shown on the PC screen of each participant.

Collaboration Tools

– Instant Video– Integration and Groupware Suites

• Lotus Notes/Domino

• OTHER COLLABORATIVE TOOLS AND WIKIS

• IMPLEMENTATION ISSUES FOR ONLINE COLLABORATION

Managerial Issues

1. How difficult is it to introduce e-collaboration?

2. How much can be shared with business partners?

3. Who is in charge of our portal and intranet content?

4. Who will design the corporate portal?5. Should we conduct virtual meetings?

Summary

1. The e-supply chain, its characteristics, and its components.

2. Supply chain problems and their causes.3. Solutions to supply chain problems provided

by EC.4. RFID applications.5. C-commerce: Definitions and types.6. Collaborative planning and CPFR.7. Integration along the supply chain.8. Types and roles of corporate portals.9. Collaborative tools.